February 17, 2026
Reid Carlisle
February 14, 2026
In a significant ruling, nine individuals have admitted guilt for misappropriating funds earmarked for pandemic relief in order to assist small business owners impacted by the COVID-19 crisis. These admissions were made following an investigation by the Queens District Attorney's Office and the New York State Inspector General's Office. The defendants, who faced charges of grand larceny and petit larceny, are now compelled to repay the state a collective sum exceeding $1 million.
"These nine defendants admitted to stealing thousands of dollars in state funds intended to support struggling businesses during the COVID-19 pandemic," Queens District Attorney Melinda Katz stated on the Queens District Attorney's Office. The money, according to the investigation, was swiftly transferred from business accounts to personal ones, highlighting a stark deviation from the intended use of the funds. The guilty parties it seems were less concerned with shoring up the businesses weathering an economic storm and more transfixed on lining their own pockets.
New York State Inspector General Lucy Lang noted the egregious nature of the offenses, "Exploiting disaster relief funds for personal gain is both criminal and shameful at any time, but particularly during a global health crisis," as mentioned on the Queens District Attorney's Office. These convictions mark an effort by New York officials to uphold the integrity of state-sponsored financial aid programs, ensuring that funds are not diverted away from their rightful beneficiaries. The theft was unveiled during a detailed examination of tax returns and bank records associated with the defendants and their corporations, revealing no prior business activity that would justify the receipt of grant proceeds.
The defendants, who submitted fraudulent applications to the New York State Empire Development Pandemic Small Business Recovery Grant Program, ranging in age from 41 to 68, surrendered to authorities between May 6 and May 9, 2025, according to a news release by the Queens District Attorney's Office. The nine had collectively siphoned off thousands intended for businesses in dire need. With $760,000 of the restitution already recovered, the state is on track to recoup losses inflicted by this ill-conceived scheme.
Assistant District Attorney Talia Vogel, Section Chief in the District Attorney’s Frauds Bureau, is prosecuting the case with the support of various officials from both the NYPD and the Office of the Inspector General.